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Strong risk related rally in USD/JPY....>

EURO-DOLLAR
MNI (London)
EURO-DOLLAR: Strong risk related rally in USD/JPY Wednesday (optimism regarding
COVID-19 China spread)  prompted general USD strength and led to EUR/USD
extending recent lows, posted a fresh YTD low of $1.0782 in pre fix trade. Rate
recovered through the fix to $1.0812, closing the day at $1.0806. Reports of
virus spread in S.Korea, along with two deaths on the quarantined Diamond
Princess cruise liner, dented Wednesday's risk appetite into Thursday trade,
USD/JPY backed off highs which saw EUR/USD edge up to $1.0815. However, recovery
ran into decent sell interest(reports of decent offers on the platforms) and
rate reversed tack and eased back below $1.0800, trading to $1.0790 into Europe.
- Germany GfK Consumer Confidence(median 9.8 vs 9.9 last) and PPI(market median
0.1%mm, -0.4%yy vs last -0.2% last) provide early interest, ahead of France
final inflation data at 0745GMT. EZ Consumer Confidence at 1500GMT. 
- US Jobless Claims and Phila Fed at 1330GMT. 
- Option linked support into $1.0782/75. Break to expose $1.0750 ahead of
$1.0730 area. Resistance $1.0815/25, $1.0850.  
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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